Construction of the Polihali Dam in Lesotho is progressing steadily, marking a pivotal phase in the Lesotho Highlands Water Project’s second stage. Strategically located at the confluence of the Senqu and Khubelu rivers in Mokhotlong, the dam is set to transform regional water security and energy production. Once completed, the reservoir will span over 5,000 hectares and hold an impressive 2,325 million cubic metres of water. This will enable a significant increase in annual water transfers to South Africa’s Gauteng region, from 780 to 1,270 million cubic metres, while boosting electricity generation at Lesotho’s ‘Muela hydropower plant from 500GWh to 800GWh per year.
By mid-2025, approximately M18 billion of the total M53 billion budget had already been spent, with 30% of the main dam works completed. One of the project’s most striking features, the M2 billion Senqu Bridge, had reached 86% completion, showcasing the scale and ambition of the infrastructure. The project has also had a notable impact on employment, creating jobs for around 14,000 people. However, officials caution that this surge in temporary employment is unlikely to make a significant dent in Lesotho’s persistent 30% unemployment rate.
The development has required the expropriation of over 7,200 community assets, with compensation paid for nearly 5,600 of them. Delays in the compensation process have been attributed to documentation challenges and the relocation of beneficiaries, many of whom have moved to South Africa for work. Environmental management has emerged as a critical concern, with contractors generating thousands of litres of waste oil, hazardous waste, and wastewater. Communities have voiced complaints about dust, noise, and water quality, although none of the 40 reported environmental incidents were classified as significant.
Despite the visible progress, the project has faced setbacks in excavation, tunnelling, and spillway construction. Originally scheduled for January 2025, water impoundment has now been postponed to November 2026. Full completion of the dam is expected between August and September 2029. As the Polihali Dam continues to take shape, it stands as a symbol of regional cooperation and long-term investment in sustainable water and energy infrastructure, with the potential to reshape both Lesotho’s development trajectory and South Africa’s resource resilience.